Barclaycard has officially announced a ban on all credit card transactions related to cryptocurrencies, effective June 27, 2025. This decision is linked to the bank's increasing concerns over the financial risks associated with cryptocurrency purchases.
Reasons for the Ban: Credit Risk and Customer Debt
Barclaycard explains that one of the main concerns is the volatility in crypto asset prices, which can lead to consumers falling into debt. The risk lies in users purchasing volatile digital assets on credit and then facing a sudden market downturn.
No Protection if Transactions Go Wrong
Another key point in Barclaycard’s decision is the lack of consumer protection. Crypto purchases made using a Barclaycard will not be covered under the UK’s Financial Ombudsman Service or the Financial Services Compensation Scheme. This means if something goes wrong with a crypto transaction, customers won’t be able to claim compensation or recover their losses.
Impact on Crypto Adoption in the UK
This move from a major bank like Barclays could set a precedent for other financial institutions in the UK and across Europe. While crypto adoption continues to grow, traditional finance institutions remain wary—especially when consumer credit and risk exposure are involved.
Barclaycard's decision to ban cryptocurrency transactions on credit cards underscores the need for caution regarding the volatile cryptocurrency market and its impact on consumer financial behavior.
